#11. Rippling Overview RIPPLING.COM 1 }}}#2H.R. Today employee data is scattered and disconnected ↳ Payroll ↳Health Insurance ↳ FSA ↳ HSA ↳ Commuter Benefits ↳ 401k ↳ Applicant Tracking I.T. ↳ Device Management ↳ Identity Management ↳ Password Management Personal Data Name, Address, Bank Account Employment Data Title, Department, Work Location FINANCE ↳ Corporate Cards ↳Expense Management ↳ Cap Table Management SALES ↳ CRM ↳Video Conferencing ↳Email Automation ENGINEERING ↳ Source Control ↳ Ticketing System ↳ Cloud Hosting 333 Every change creates a cascade of busy work. Hired someone, Had a baby, Divorced, Requested time off, Changed departments, Changed work locations, Converted to FTE, Lost their computer, Needs a new computer, Needs a new app, Got promoted, Hired someone, Fired someone, Became a manager, Got a new manager, Joined a task force, Got a raise, Earned a bonus, Earned a commission, Offboarded someone, Received an equity grant, Reorganized the company, Placed on a PIP, Moved and changed phone numbers, Needs a new email alias, Changed t-shirt sizes, Updated withholding. N#3Rippling centralizes employee data across all systems Hired someone, Had a baby, Got divorced, Requested time off, Changed departments, Changed work locations, Converted to W2, Lost their computer, Needs a new computer, Needs a new app, Got promoted, Hired someone, Fired someone, Became a manager, Got a new manager, Joined a task force, Got a raise, Earned a bonus, Earned a commission, Offboarded someone, Received an equity grant, Reorganized the company, Placed on a PIP, Moved and changed phone numbers, Needs a new email alias, Changed t-shirt sizes, Updated withholding. RIPPLING Ś Payroll Benefits Computers & Security Apps & Access 333#4Rippling is growing fast across a broad portfolio of products Total Bookings Annual Recurring Revenue (ARR) Double Digit Millions Source: Rippling Internal Data. Note: Financial figures in this document are under review and subject to change. Product Split for ARR Benefits Payroll Core HRIS IT Reseller }}} 4#5Customer and corporate highlights Several thousand customers across diverse industries ARR Mix by Segment Industry Mix ■MM SMB Tech Non-Tech # Companies PC Mag Editor's Choice 2019 4.9 stars Software Advice 4.9 stars G2 Crowd "Payroll done right. Sleek, modern look and ease of use! Payroll made for the 21st century" 4.9 stars Capterra "I'm so impressed with Rippling. As a founder, it's made my life 100x easier than our previous HR/payroll system. Simply awesome." - Michael Bamberger, Tetra Insights Source: Rippling Internal Data. Note: Financial figures in this document are under review and subject to change. G2Crowd Review "It's the first employee management system I've used that truly has everything in one place, from HR to IT. Getting someone up and running at our company now is so simple." CEO, Givily Meet Our Executive Team (link here) Offices San Francisco, California (HQ) Ina Bangalore, India ~ 250 employees Investors KLEINER PERKINS Y Combinator Threshold initialized() 333 LO#62. SaaS Metrics (Template only) Note: slides that follow include illustrative numbers only, not actuals. RIPPLING.COM 6 }}}#7Illustrative numbers shown, not actuals [Acme Company] Key Metrics June 2020 Total Bookings ARR 12 -month Total ARR growth [Acme Company] Key Stats Magic Number (Qtr end April) Net Dollar Retention Gross Margin** Source: [Acme Company] Internal Data. Note: Bookings figures as of 2020-06-30. $2.0M 3.0x 1.0 120% 85% }}}#8Illustrative numbers shown, not actuals Monthly Net New ARR by Bookings Type $90K $5K $25K $75K -$5K -$1.0K Jun-19 $96K $7K $27K $77K -$5K -$1.0K Jul-19 $101K $9K $29K $79K -$5K -$1.0K Aug-19 Source: [Acme Company] Internal Data. Note: Bookings figures as of 2020-06-30. Product Churn $107K $11K $31K $81K -$6K -$1.1K Sep-19 Logo Churn $112K $13K $33K $83K -$6K -$1.1K Oct-19 Cross Sell Expansion / Contraction $118K $15K $35K $85K -$6K -$11K Nov-19 $124K $17K $37K $87K -$6K -$1.1K Dec-19 $129K $19K $39K $89K -$6K -$11K Jan-20 $135K $21K $41K $91K -$7K -$12K Feb-20 New Logo Sales $140K $23K $43K $93K -$7K -$12K $146K $25K $45K $95K -$7K -$12K $152K $27K $47K $97K -$7K -$12K Mar-20 Apr-20 May-20 $157K $29K $49K $99K -$7K -$12K Jun-20 333 00#9Illustrative numbers shown, not actuals Total Bookings ARR by Revenue Type and Category % YoY Growth Туре Category 1 Category 2 Category 3 Category 4 $ Total ARR % of Total $1.4M $0.4M $0.1M $0.1M 72% 19% 5% 4% Source: [Acme Company] Internal Data. Note: Bookings figures as of 2020-06-30. 240% 200% 150% 120% Product 1 Product 2 Product 3 Product 4 Product 5 Product 6 Product 7 Product 8 Product 9 Product 10 Product 11 Product 12 Product 13 Product 14 Product 15 Product 16 Product 17 $2.0M in Total ARR (June-2020) Split by Product $0.04M $0.02M $0.06M $0.07M $0.09M $0.11M $0.07M $0.09M $0.13M $0.11M $0.15M $0.13M $0.17M $0.15M $0.19M $0.22M $0.20M 333#10Illustrative numbers shown, not actuals Sales Team Month Zero Cash-on-Cash Payback Currently 1.0x What do we mean by cash-on-cash sales payback? This is a non-standard metric we believe is an important measure of a sales team's cash efficiency. We calculate this metric by taking the total headcount expenses (salary, commissions, and severance) for the sales department each month and treat this as "cash out" each month. Then, we calculate the month zero "cash in" brought in by the sales team for that month including upfront payments on annual deals and monthly payment on monthly deals. One way of understanding this data is that a ratio of "1.0" indicates a rep payback period of zero months - i.e. that reps pay for themselves on a cash basis in one month, and therefore the sales team can be expanded without impacting burn. $40K 1.00x ($40K) $50K 1.11x ($45K) Jul-19 $50K 1.00x ($50K) Aug-19 $40K 0.67x ($60K) Sep-19 $50K 1.00x ($50K) Oct-19 - Cash In/Out Ratio Cash Out Cash In $50K 0.83x $50K Nov-19 0.83x ($60K) ($60K) Dec-19 $30K 0:43x ($70K) Jan-20 $50K 0.7.1x ($70K) Feb-20 $30K 0:43x ($70K) Mar-20 $70K 0.88x ($80K) Apr-20 $50K 0.71x ($70K) Jun-19 Source: [Acme Company] Internal Data. Note: Bookings figures as of 2020-06-30. Additional notes: Numbers above 1.0 indicate reps more than pay for themselves each month and increasing sales headcount will immediately reduce cash burn. Numbers below 1.0 indicate the rep payback period is longer than month zero, and growing the sales team will consume some amount of capital in the short term. The costs of acquiring demos -- the marketing team and marketing spend-- are excluded from the analysis. May-20 $60K 1.00x ($60K) Jun-20 }}} 10#11Illustrative numbers shown, not actuals Quick Ratio 8 9 Jun-19 Jul-19 9 10 9 10 8 9 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 9 10 9 9 Feb-20 Mar-20 Apr-20 May-20 Source: [Acme Company] Internal Data. Note: Bookings figures as of 2020-06-30. Quick Ratio above defined as (New Logo Sales + Expansion)/(Contraction + Logo Churn + Product Churn) 9 Jun-20 333 11#12Illustrative numbers shown, not actuals Magic Number 1.2 Qtr End: Jul-18 1.0 Qtr End: Oct-18 1.2 1.1 M Qtr End: Jan-19 Qtr End: Apr-19 1.0 Qtr End: Jul-19 1.2 Qtr End: Oct-19 1.1 Qtr End: Jan-20 1.2 Qtr End: Apr-20 1.2 Qtr End: Jul-20 Source: [Acme Company] Internal Data. Note: Bookings figures as of 2020-06-30. Magic Number calculated as current quarter estimated revenue minus previous quarter revenue, annualized, divided by previous quarter's sales and marketing expense. 333 12#13Illustrative numbers shown, not actuals Net Dollar Retention Rate of Customers Acquired 12+ Months Ago 160% 157% Jun-19 154% Jul-19 151% 148% Sep-19 145% Oct-19 142% Nov-19 139% Dec-19 Aug-19 Source: [Acme Company] Internal Data. Note: Bookings figures as of 2020-06-30. Definition: % Net Dollar Retention Rate = Total Bookings ARR (after expansion, contraction, cross-sell, churn) in current period (inclusive of customers acquired 12+ months ago) divided by Total Bookings ARR (after expansion, contraction, cross-sell, churn) for same customer base as of 1 year prior. 13 136% Jan-20 133% Feb-20 130% Mar-20 127% Apr-20 125% }}} May-20 Jun-20#14Illustrative numbers shown, not actuals Net Dollar Retention by Cohort Month Based on recent cohort trend we estimate ~125% net dollar retention rate over 12 months for customers added in June 2020. Months from Start → 1 2 Individual Cohort Start ARR per Cohort Months ($ in 000's) Jun-18 $5 Jul-18 $10 Aug-18 $15 Sep-18 $20 Oct-18 $25 Nov-18 $30 Dec-18 $35 Jan-19 $40 Feb-19 $45 Mar-19 $50 Apr-19 $55 May-19 $60 Jun-19 $65 Jul-19 $70 Aug-19 $75 Sep-19 $80 Oct-19 $85 Nov-19 $90 Dec-19 $95 Jan-20 $100 Feb-20 $105 Mar-20 $110 $115 Apr-20 May-20 $120 Jun-20 $125 110% 100% 102% 104% 106% 108% 110% 108% 110% 108% 110% 108% 106% 108% 106% 102% 100% 104% 106% 104% 102% 104% 106% 108% 108% 112% 102% 104% 102% 108% 110 112% 106% 112% 110% 108% 110% 108% 106% 104% 104% 102% 106% 104% 106% 104% 102% 108% 110% 110% 3 114% 104% 106% 104% 110% 112% 114% 108% 114% 112% 110% 112% 110% 108% 106% 106% 104% 108% 106% 108% 106% 104% 111% 111% 111% 4 116% 106% 108% 106% 112% 114% 116% 110% 116% 114% 112% 114% 112% 110% 108% 108% 106% 110% 108% 110% 108% 113% 113% 113% 113% 5 118% 108% 106% 108% 114% 116% 118% 112% 114% 112% 114% 112% 114% 108% 110% 110% 108% 108% 110% 112% 114% 114% 114% 114% 114% 6 122% 110% 108% 110% 116% 120% 114% 116% 114% 116% 114% 116% 112% 112% 112% 112% 112% 112% 116% 116% 116% 116% 116% 116% 7 120% 112% 110% 112% 118% 120% 118% 116% 114% 116% 114% 116% 118% 114% 110% 114% 114% 114% 117% 117% 117% 117% 117% 117% 117% 8 122% 114% 112% 114% 120% 122% 120% 118% 116% 118% 116% 118% 120% 116% 112% 116% 116% 119% 119% 119% 119% 119% 119% 119% 119% 9 124% 116% 114% 116% 122% 124% 122% 120% 118% 120% 118% 120% 122% 118% 114% 118% 120% 120% 120% 120% 120% 120% 120% 120% 120% 10 126% 118% 116% 118% 124% 126% 124% 122% 120% 122% 120% 122% 124% 120% 116% 122% 122% 122% 122% 122% 122% 122% 122% 122% 122% 11 128% 120% 118% 120% 126% 128% 126% 124% 122% 124% 122% 124% 124% 122% 123% 123% 123% 123% 123% 123% 123% 123% 123% 123% 123% 12 128% 122% 125% 122% 128% 128% 128% 126% 125% 127% 125% 124% 125% 125% 125% 125% 125% 125% 125% 125% 125% 125% 125% 125% 125% Estimates on new i cohort expansion in grey I Source: [Acme Company] Internal Data. Note: Bookings figures as of 2020-06-30. Definition: Net Dollar Retention Rate = Total Bookings ARR (after expansion, contraction, cross-sell, churn) in current period for customers acquired 12 months prior / Total Bookings ARR (after expansion, contraction, cross-sell, churn) for the same customers as of prior period. 333 14